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Thursday, February 05, 2009

DRYS: DryShips Inc. (Nasdaq)

DryShips Inc. (more DRYS charts) is a global shipping transportation company specializing in the transportation of dry bulk cargo. Their executive offices are located in Amaroussion, Greece. They are listed on the Nasdaq Exchange (since February 2005) under the symbol "DRYS." Their website says their fleet carrying capacity totals over 4 million dead weight tons.

Well known market timer, Don Wolanchuk, likes Dry Ships (DRYS on the NASDAQ exchange) as a high octane (high risk) stock to take advantage of a bull market rally he expects.

Beware, analysts have much lower estimates for next year. The current PE of 0.31 will rise to a PE of 5.3 if the most bearish earnings estimate for 2009 at $1.23 holds true.

Analyst Estimates

Earnings Est

Current Year Dec-08

Next Year Dec-09

Avg. Estimate

11.45

3.52

No. of Analysts

5

9

Low Estimate

10.90

1.23

High Estimate

11.95

6.54

Year Ago EPS

9.54

11.45

Note the high debt level, again from Yahoo! finance. Total debt of $2.9B greatly exceeds market cap of $286M. The bears may be betting that idle, empty ships during a global recession will make it tough for DRYS to make loan payments.